Vacation Pay Must be Paid Out Upon Termination in Colorado, Even if Employer’s Policy Says Otherwise

Amy Knapp, Brooke Colaizzi, and Beth Ann Lennon

On June 14, 2021, the long-awaited decision was issued by the Colorado Supreme Court in Nieto v. Clark’s Market. The Colorado Supreme Court has now definitively ruled that under the Colorado Wage Claim Act employers must pay employees’ earned and determinable vacation upon termination and that any policy or agreement provisions forfeiting employees’ rights to such payments are void.

Read the full advisory HERE.